Legal Documents for your business

Create a free Contractor Agreement (Individual)

Create for free

This legal document has been provided by Lexis Nexis

Contractor Agreement (Individual)

Contractor Agreement (Individual)

4.7 (108)
under 10 minutes
under 10 minutes
Last updated December 2018
Last updated November 6, 2018
Suitable for all Australian states and territories
Suitable for all Australian states and territories

A Contractor Agreement (Individual) allows you to engage a Contractor that is not a registered company. Customisable and ready for use in under 5 minutes.

Get started

Document Overview

The Contractor Agreement (Individual) allows you to hire a contractor that is an individual (ie. not a registered company). The Contractor Agreement also sets out the important legal terms, such as clauses on IP, confidentiality, warranties and Indemnities and more. Utilising independent contractors is a very effective avenue for business' and companies that want to tap into specialised individuals that might not otherwise be available or affordable.

Use this Contractor Agreement (Individual) if:

  • You are engaging the services of someone as an Individual Contractor instead of an employee of the company;
  • You want to ensure that the company owns any intellectual property that is developed by the contractor for the company; and
  • You are looking to eliminate any confusion about each party’s rights and obligations.

What does the Contractor Agreement (Individual) cover?

  • The nature of the services to be performed;
  • Insurance;
  • Termination;
  • Payment and expenses;
  • Confidentiality;
  • Intellectual property; and
  • Relevant warranties and indemnities.

Other names for Contractor Agreement (Individual) include:

  • Independent Contractor Agreement.

What’s the difference Between a Contractor Agreement and:

An Employment Agreement

Employment agreements are an agreement between an employee and employers, and often include scope of work, hours of work and salary. They are generally shorter in length in comparison to other agreements. Sometimes, employment contracts include a Restraint of Trade clause that attempts to restrict an employee’s conduct once they leave the company.

A Services Agreement

Service Agreement is commonly used between two parties, one who will provide the service and the principle, who pays for the service. Often these agreements involve key dates, rights and obligations, payment, IP rights, termination, non-solicitation and liability and waivers.

Non-Disclosure Agreement

A Non-Disclosure Agreement (NDA) is a legal document that restricts the other signing party from disclosing confidential information to another person or entity. This is the case with a one-way NDA. This document is enforceable if signed by both parties. If an NDA is required to protect intellectual property and information of both parties, then a Mutual NDA will be required.

Tips for Completing Your Contractor Agreement

When hiring a contractor, it is important that all essential legal terms are included, to ensure that your business’ IP is not exposed and to ensure that the rights of the contractor working for you are maintained.

Common legal terms to include in your Contractor Agreement are:

  • The parties: this includes the names of the parties involved as well as the relevant business information.
  • Description of the services or results: Essentially, the work to be done.
  • Payment: Including the manner and timing.
  • Intellectual property: Most notably, the work created by the contractor will often be considered your business’s IP, as per their Contractor Agreement.
  • Confidential Information: This protects your company’s information, such as the business’ IP.
  • Indemnity: This often involves outlining any compensation for potential loss.
  • Insurance: This involves the insurance obligations of both parties.
  • Subcontracting: This entails whether it is possible for the contractor to sub-contract the work, or whether there are prohibited from doing so.
  • Exclusivity arrangement: This limits the ability of the contractor to work with other clients during the period they are working for you.

Why Do Companies Hire Contractors?

Commonly, hiring a contractor is ideal when businesses need to complete short- term work. Often this work is specialised and requires the expertise and specific equipment that the contractor possesses. Utilising contractors is often a more cost effective manner in hiring specialised individuals, who would otherwise have been unavailable or unaffordable for businesses.

What Are Common Services Hired as a Contractor

A few services for which contractors are hired for include:

  • Construction work
  • Writing and drafting content for a company, which are often commonly known as freelancers
  • Photography and filming
  • Web developing

5 Tips When Hiring a Contractor

Important points to consider when hiring a contractor:

  1. Does the work you require involve the need for a contractor? Or rather, should they work as an employer? It is best to take numerous factors into consideration such as whether the work will only be required for a short period of time.
  2. When considering the person for the job, be sure to interview carefully. This can involve video conferencing to make sure that the contractor is skilled for the job and best suited to work with your business.
  3. Look at what other clients have said about the work that the contractor has done in the past. Do they have good reviews from previous clients?
  4. Obtain or create, with the assistance of a legal professional, a Contractor Agreement. Ensure that it includes essential legal terms of the nature of the work to be completed, insurance, termination, payment and confidentiality, just to name a few. Ensure that both parties adequately understand and sign this Contractors Agreement.
  5. Ensure that you establish a platform through which you can keep track of the contractor’s hours and how much they are costing you, in addition to briefly noting the work they are completing.

Other documents you may need:



Document Reviews

No reviews available.

How it works

Follow the steps below and you’ll have your ready-to-use document in no time.

Step 1

Set up a free Lawpath account

Step 2

Search and find the document you need from our list

Step 3

Follow the prompts and fill in all the relevant details

Step 4

Download your document in ready-to-use PDF or Docx* format. Access from any device, at anytime.

A giant library of template documents combined with a legal marketplace make this a must have for any small business owner.
Jake Benjafield

Create and access documents anytime, anywhere by signing up to our monthly or annual subscription plan

Sign up now

Recent Articles

Recent Articles

Is It Legal to Sell Data Under the GDPR?

The GDPR protects European citizens data rights through privacy laws, which impacts a company's ability to sell their data. Our article breaks down the law.

What Business Structure Should My Joint Venture Be?

Interested in how business structures such as joint ventures work? Want to know whether your business will suit a joint venture? keep reading for more.

What is Value Investing?

Value investing is an investment strategy for buying stocks. Read this article to find out how it works and how to do it the right way.
Not sure what you need?
Call and speak to one of our
consultants for free on
1800 529 728
Australia’s leading
Online legal website

Lawpath has been recognised as a
leader and innovator across the legal

Safe and Secure

We keep all your information
encrypted to ensure your
privacy and safety.